Mohan Maheswaran, Semtech's President and Chief Executive Officer, stated, "We were pleased to deliver solid earnings and operating leverage despite a challenging demand environment and weak bookings. Strength in the high-end consumer and industrial end-markets offset weakness from other markets."
Maheswaran added, "We are encouraged by the number of new opportunities we are seeing from emerging markets and the quality of the design-win momentum we are seeing with several of our newer platforms which should contribute strongly to the Company’s growth prospects in FY16."
For fourth quarter, net sales are expected to be in the range of $128.0 million to $132.0 million, the company said. GAAP earnings per diluted share are expected to be in the range of $0.14 to $0.16 and non-GAAP earnings per diluted share are expected to be in the range of $0.32 to $0.34, it added.
Cash Flow
Semtech Corp has generated cash of $94.53 million from operating activities during the nine month period, up 8.18 percent or $7.14 million, when compared with the last year period.
The company has spent $26.91 million cash to meet investing activities during the nine month period as against cash outgo of $24.83 million in the last year period.
The company has spent $78.32 million cash to carry out financing activities during the nine month period as against cash outgo of $48.36 million in the last year period.
Cash and cash equivalents stood at $232.49 million as on Oct. 26, 2014, down 2.07 percent or $4.91 million from $237.39 million on Oct. 27, 2013.
Working Capital
Semtech Corp has witnessed a decline in the working capital over the last year. It stood at $284.10 million as at Oct. 26, 2014, down 10.77 percent or $34.30 million from $318.40 million on Oct. 27, 2013. Current ratio was at 3.57 as on Oct. 26, 2014, down from 4.15 on Oct. 27, 2013.
Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 98 days for the last year period. Days sales outstanding went down to 49 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 46 days for the quarter compared with 119 days for the previous year period. At the same time, days payable outstanding went down to 69 days for the quarter from 70 for the same period last year.
Debt Level
Semtech Corp has recorded a decline in total debt over the last one year. It stood at $252.93 million as on Oct. 26, 2014, down 14.68 percent or $43.52 million from $296.45 million on Oct. 27, 2013.
Total debt was 26.85 percent of total assets as on Oct. 26, 2014, compared with 25.22 percent on Oct. 27, 2013. Debt to equity ratio was at 0.45 as on Oct. 26, 2014, up from 0.39 as on Oct. 27, 2013. Interest coverage ratio improved to 15.60 for the quarter from 7.30 for the same period last year.